Cigna announced it will exit the Affordable Care Act’s (ACA) individual marketplaces in 2027, reallocating resources to more profitable segments of its business. The decision was disclosed during the company’s first-quarter earnings call on Thursday, alongside better-than-expected financial performance.
The insurer reported $1.7 billion in profit for the quarter and raised its full-year earnings forecast. Cigna currently serves 369,000 ACA members across 11 states, a fraction of its total 18.3 million members.
Why Cigna Is Leaving the ACA Market
Brian Evanko, Cigna’s chief operating officer, emphasized the decision was not made lightly. He cited two primary reasons:
- Limited growth potential: Cigna did not see a viable path to significantly expand its ACA individual market business.
- Strategic reallocation: Exiting the market would allow Cigna to prioritize higher-growth areas, including:
- Evernorth specialty and care services division
- Pharmacy benefits management
- Employer-sponsored health plans
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